When an interim review is enough — and when it is not

Interim reviews give limited assurance. They rely heavily on inquiry and analytics. They do not replace a statutory audit when law, lenders, or shareholders require an opinion.

Reviews fit stable close processes

If last year’s audit was clean, controls are unchanged, and the board mainly wants a mid-year pulse, a review can be proportionate.

Escalate when risk rises

New entities, a warehouse fire, a major related-party restructuring, or a first-time bank covenant — these usually call for more than analytical procedures. Pretending a review will satisfy a lender who asked for an audit wastes everyone’s calendar.

Ask the user of the report

The deciding question is rarely “what is cheaper?” It is “who must rely on this, and what wording do they need on the report cover?”